USDJPY – Down
USDJPY trading plan:
New bank loans in China jumped more than expected to a record 4.9 trillion yuan in January as the central bank looks to kickstart a recovery in the world’s second-biggest economy after the lifting of harsh pandemic controls. A strong rebound in credit demand will be essential for an economic revival this year after harsh COVID measures and a crisis in the property sector dragged China’s growth down to 3% in 2022, one of its worst rates in nearly half a century. Chinese banks tend to issue more loans at the beginning of the year to gain higher-quality customers and win market share, but the size of the increase spurred hopes that business and consumer confidence is improving rapidly after the anti-COVID curbs were suddenly lifted in December. This is a good signal for the stock market and USDJPY, which has a correlation with the shares.
Investment idea: buy 131.25 and take profit 132.00.
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